Funds

Management
“When money realizes that it is in
good hands, it wants to stay and
multiply in those hands.”
― Idowu Koyenikan
Our team
[ MBA Tech - IT ]

Akash Majumdar Varun Jagtap

Roll no - I220 Roll no - I210

Smit Thummar Mahima Rajapriyar Hitesh Jawale

Roll no - I238 Roll no - I228 Roll no - I212
 Venture Capital Funds

● Venture capital means funds made available for startup

firms and small businesses with exceptional growth
potential.
● Venture capital is long term risk capital to finance high
technology projects which involve risk but at the same
time has strong potential for growth.
SEBI’s Definition of Venture Capital
Funds

The SEBI defined Venture Capital fund in its regulation 1996

as 'a fund established in the form of a company or trust which
raises money through loans, donations, issue of securities or
units as the case may be & makes or proposes to make
investments in accordance with the regulations.
 Features of Venture Capital funds

● Long term investment

● Lack of liquidity
● High risk return
● Private equity
● Wide Scope
● Equity participation
Advantages

● Provide large sum of equity finance.

● Venture Capitalist are rewarded by business success & the
capital gain.
● Bring wealth and expertise to your company.
● The Venture Capitalist also has a wide network of contacts.
● The business does not stand the obligation to repay the
money.
Disadvantages

● Lengthy and complex process (needs detailed business plan,

financial projections and etc.)
● In the deal negotiation stage, you will have to pay for legal
and accounting fees
● Investors become part owners of your business-founder
loss of autonomy or control
● It is uncertain form of financing.
Problems Faced

● Requirement of an experienced management team.

● Requirement of an above average rate of return on investment.
● Longer payback period.
● Uncertainty regarding the success of the product in the market.
● Questions regarding the infrastructure details of production.
● Skills and Training required.
● Time Period.
● Interference in Business
VC Industry wise segmentation
VC Funding in India
VCFs in India can be categorized into following five groups:
1. Those promoted by the Central Government controlled
development finance institutions. For example:
● ICICI Venture Funds Ltd.
● IFCI Venture Capital Funds Ltd (IVCF)
● SIDBI Venture Capital Ltd (SVCL)

2. Those promoted by State Government controlled development

finance institutions. For example:
● Punjab Infotech Venture Fund
● Gujarat Venture Finance Ltd (GVFL)
● Kerala Venture Capital Fund Pvt Ltd.
3. Those promoted by public banks. :- For example:
● Can bank Venture Capital Fund
● SBI Capital Market Ltd

4. Those promoted by private sector companies. For example:

● IL&FS Trust Company Ltd
● Infinity Venture India Fund

5. Those established as an overseas venture capital fund. :-For

example:
● Walden International Investment Group
● HSBC Private Equity
● Management Mauritius Ltd
 Bombay Angel Funds
Mumbai Angels is a Leading Angel Investing platform for early-stage venture investing. Since our
inception in 2006, we have helped many new-age and innovative endeavors lift off the ground
successfully, just like the wings of an angel. In our 16 years of experience, we have seen many cycles
of early-stage investments and have understood how essential it is to have a structured early-stage
investment portfolio for the economics to play out.

And we believe that with our portfolio of 200+ companies, can steer your portfolio and enterprise in the
right direction.

Mumbai Angels Network is a sector-agnostic, new age, early-stage, venture investment platform with a
diverse membership base, spanning the globe. Today, the network is 600+ members strong, across 70
locations all over the world. They have a 170+ strong portfolio with over 70 exits and next rounds of
investments
 Why Mumbai Angels ?
Mumbai Angels has been a cradle for both plugin businesses for larger corporates as well as
financial investors looking for incubated businesses ready to scale up. We bring both these
opportunities to the table for your accelerated development and growth.

Our Portfolio includes a total 200+ deals till date. With INR 200 CR invested from 60 Cities across
10 Countries, we help investors find their blooming seeds and founders find their fertilizers for
growth.

We make investing easier by presenting you with golden investment Opportunities and fund the
next generation of global businesses with Mumbai Angels Network.

Every new venture requires a boost and Mumbai Angel knows how to deliver the angel investment
which your venture deserves.
About the Mumbai Angels Network

● Invest from a pool of 500+ new companies every year.

● Co-invest with VCs
● Portfolio monitored by a team of seasoned professionals
● Mumbai Angels is the platform of choice for super angels or first time investors.
● In 2020-21, we invested in 35 companies
● 36 of our portfolio companies saw successful exits/next rounds
● Investor network of over 700 retail investors, HNIs, family offices, corporates and venture
capital funds
Diversification of Mumbai angels Portfolio
 Hedge Funds
❖ A hedge fund is a limited partnership of private investors whose money is managed by professional
fund managers who use a wide range of strategies, including leveraging or trading of non-traditional
assets, to earn above-average investment returns.
❖ Hedge fund investment is often considered a risky alternative investment choice and usually requires a
high minimum investment or net worth, often targeting wealthy clients.
❖ The term "hedge fund" defines this investment instrument as the manager of the fund often creating a
hedged bet by investing a portion of assets in the opposite direction of the fund's focus to offset any
losses in its core holdings.
❖ An investor in a hedge fund is commonly regarded as an accredited investor, which requires a
minimum level of income or assets. Typical investors include institutional investors, such as pension
funds, insurance companies, and wealthy individuals.
Types of Hedge Funds

Hedge funds target select investments and pools of securities primed for gains. Four common types of
hedge funds include

❖ Global macro hedge funds are actively managed funds that attempt to profit from broad market
swings caused by political or economic events.
❖ An equity hedge fund may be global or specific to one country, investing in lucrative stocks while
hedging against downturns in equity markets by shorting overvalued stocks or stock indices.
❖ A relative value hedge fund seeks to exploit temporary differences in the prices of related
securities, taking advantage of price or spread inefficiencies.
❖ An activist hedge fund aims to invest in businesses and take actions that boost the stock price
which may include demands that companies cut costs, restructure assets or change the board of
directors.
Examples of Hedge Funds
As of 2022, the most notable hedge funds include:

❖ Elliot Management Corporation with a 55-year-long history and over $50 billion in assets under
management (AUM). Its core holdings are in the energy sector.
❖ Bridgewater Associates is a global leader, with more than $235 billion in assets AUM, and a
rate of return of 32% for the first half of 2022.
❖ Man Group offers a mix of long/short equity funds, private market funds, real estate funds,
multi-asset funds, and fixed funds and its core value is responsible investing, which it achieves
through its funds’ compliance with environmental, social, and governance ESG investing
goals.6
Common Hedge Fund Strategies
❖ Hedge fund strategies cover a broad range of risk tolerance and investment philosophies
using a large selection of investments, including debt and equity securities, commodities,
currencies, derivatives, and real estate.
❖ Common hedge fund strategies are classified according to the investment style of the fund's
manager and include equity, fixed-income, and event-driven goals.
❖ A long/short hedge fund strategy is an extension of pairs trading, in which investors go long
and short on two competing companies in the same industry based on their relative
valuations.
What is Mutual Funds ?
How does a Mutual Fund Work ?
4) Crowdfunding in India
Introduction
Continue..
Continue..
➢ Indian Scenario
Continue..
● There have been attempts like crowdfunding for events like
Goa Project and campaigns like Teach for India. Crowdfunding
is slowly becoming an alternative funding channel for the film
industry as well. Film director Pawan Kumar from Karnataka
recently raised 51 Lakhs using Facebook and other platforms.
● As India being one biggest country for NGOs, crowdfunding
stands a big chance as well.
● The new companies act, which mandates all companies to
spend 2% of their profits on corporate social responsibility, will
also help them crowdfunding gain traction.
➢ Crowdfunding Operations
➢ Categories of Crowdfunding
➢ Models of Crowdfunding
➢ Crowdfunding Platforms in India
 Private Equity Funds
● A private equity fund is a collective investment scheme used for making
investments in various equities and debt instruments.

● They are usually managed by a firm or a limited liability partnership.

● The tenure (Investment horizon) of such funds can be anywhere between 5-10
years with an option of annual extension.

● A team of investment professionals from a particular private equity firm raise

and manage the funds, where they utilise this money for raising new capital,
future acquisitions, funding startups or new technology, investing in other
private companies or making the existing fund stronger.
 WHO CAN INVEST?
● A private equity fund is typically open only to accredited investors and
qualified clients.

● Accredited investors and qualified clients include institutional investors, such

as insurance companies, university endowments and pension funds, and high
income and net worth individuals.

● The initial investment amount for a private equity investment is often very
high.
 TYPES OF PRIVATE EQUITY
STRATEGIES
1. VENTURE CAPITAL

● Venture capital refers to the fund which further invests in small young
companies and startups who have limited or no access to the outside financial
markets.

● Venture capital funds are an excellent source of capital for emerging companies
with ambitious value propositions and innovations.

● Venture funds do not carry any debt and when invested in a right young
startup, they can generate extraordinary returns.
 TYPES OF PRIVATE EQUITY
STRATEGIES
2. BUYOUT or LEVERAGED BUYOUT (LBO)
● They are different from VC funds as a leveraged buyout invests money in a
larger business along with additional leverage (usually in a form of stake
holding), which is placed on the organization to generate favourable and
sizeable returns.

● The investment objective of a leveraged buyout is to generate returns on the

acquisition that will outweigh the interest paid on the debt.

● For the firm that’s performing the LBO, this is a good option to generate high
returns while only risking a small amount of capital.
 TYPES OF PRIVATE
EQUITY STRATEGIES

3. GROWTH CAPITAL
● Private equity growth capital funds invest in mature corporates with a successful
business model to enable them to expand or restructure their operations, enter
new markets, or finance a major acquisition.

● It is usually a small investment as the company which requires growth capital is

generally a large profit generating enterprise.
 ADVANTAGES

● Large amounts of funding

● Untapped Potential

● Active Involvement

● Incentives and Returns

 DISADVANTAGES

● Requires upfront funding

● It can be a lengthy process

● Less control for investors

Thanks!
Do you have any questions?

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